I'm wondering if this is just the case right now...or if that has been the case since the beginning of markets - in which case the DJIA should, of course, have never gone up past 50! If my trading is to be guided by this idea, I need to understand the whole concept.

“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” ― Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds

E.H. Harriman's rule of making $$
In 1912, an interviewer asked "Old Man Harriman" about his stock market skills
and secrets. The trader replied..."If you want to know the secret of making money
in the stock market, it is this..Kill Your Losses! If the trade goes your way, let it run.
Move your stops up behind it so that it will will have room to fluctuate and move higher".
E.H. Harriman's family fortune endures to this day.

Being wrong is acceptable...staying wrong is unacceptableBeing wrong isn't a choice...staying wrong is!----------------------------------------------------I have never been lost, but I will admitto being confused for several weeks. Daniel Boone

If it won't go down,... Whats the other side?
If we don't have any other shocks I think it should be clear the boys made a ton today stealing from the shorts. The next 2 - 4 days I would think will be strong up days with any selling met with buying.
The trend? It may be turning but its a fighter

Plenty of experience on this board and many disagreements ... which keeps things fun and interesting. BUT, if you had to share just ONE very important thing you've learned about trading, what would it be? ONE LINERS preferred

For me, it's risk management ... never risk what you can't comfortably lose.

Plenty of experience on this board and many disagreements ... which keeps things fun and interesting. BUT, if you had to share just ONE very important thing you've learned about trading, what would it be? ONE LINERS preferred

For me, it's risk management ... never risk what you can't comfortably lose.

Wait patiently for your setup. Don't jump the gun too early, don't chase it if you miss it. Plenty more trades come along if you wait...

There are alot of good comments in this thread.
Allow me to add a couple I think help me.
This one I read somewhere years ago and always follow it as I navigate the market. It goes something like this......
At times a person will make a profit by NOT following all the rules of a good trading system,,,, take the profit. However do not take the credit for the trade if you got there breaking or overlooking good trading rules. If you do, then this will very well imprint on you and you will begin to alter a good trading plan and repeat breaking the rules. Sooner or later it will come back to haunt you, and create losses. Kinda like a bad golf swing, it may work but its not consistent.
And my original,,,,,, "Everything I learned about trading I learned from Joe Montana".
Explanation: I was watching an interview some years back, and they asked Joe Montana how he was able to get sacked, lose yards, and the very next play come back with a cool head, and make a great the play.
His response was that every play is a new play, you can't allow a bad play to disrupt your thinking and throw off your plan. You forget it, and don't take it back to the huddle. Everytime your in the huddle its a new play and a new game.
I thought about that and how it applies to trading,,,,,It helps me too stay on track, and stay with a plan!!!!!
Good trading!!!!
HOLYGRAIL

This came as a bookmark from the Chicago Mercantile Exchange's book "Trading Tactics", largely about trading cattle futures, with several papers by various traders, technicians :
Determine what your profit objective is and what your loss limit is.
Investigate new trading techniques and tactics like the ones in this book.
Set your priorities before making a trade.
Concentrate on market signals.
Intelligently apply your rules of trading.
Plan your trade and trade your plan.
Learn to make decisions without always second guessing yourself.
Isolate yourself from the crowd.
Never look for excuses or anyone else to blame. Be the master of your own destiny.
Execute your plan. Goals are dreams that are acted upon.
Yuri's (youmast) website used to have a large, excellent collection of wisdom from dozens of traders he's learned from in his considerable studies. It's gone now.